Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 26, 2023 | Apr. 28, 2023 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001324272 | |
Entity Registrant Name | Ruths Hospitality Group, Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-24 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 26, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-51485 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 72-1060618 | |
Entity Address, Address Line One | 1030 W. Canton Avenue, Suite 100 | |
Entity Address, City or Town | Winter Park | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32789 | |
City Area Code | 407 | |
Local Phone Number | 333-7440 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | RUTH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 32,132,941 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 26, 2023 | Dec. 25, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 16,000 | $ 23,002 |
Accounts receivable, less allowance for doubtful accounts 2023 - $38; 2022 - $57 | 28,653 | 45,013 |
Inventory | 8,439 | 9,138 |
Prepaid expenses and other | 3,112 | 4,662 |
Total current assets | 56,204 | 81,815 |
Property and equipment, net of accumulated depreciation 2023 - $211,809; 2022 - $205,849 | 152,132 | 148,837 |
Operating lease right of use assets | 197,998 | 195,703 |
Goodwill | 45,549 | 45,549 |
Deferred income taxes | 3,784 | 3,388 |
Other assets | 1,463 | 1,519 |
Total assets | 501,543 | 521,806 |
Current liabilities: | ||
Accounts payable | 7,947 | 8,736 |
Accrued payroll | 13,155 | 17,107 |
Accrued expenses | 17,096 | 16,997 |
Deferred revenue | 65,056 | 74,375 |
Current operating lease liabilities | 14,308 | 16,557 |
Other current liabilities | 4,704 | 4,497 |
Total current liabilities | 122,266 | 138,269 |
Long-term debt | 15,000 | 30,000 |
Operating lease liabilities | 222,205 | 218,804 |
Unearned franchise fees | 2,197 | 2,257 |
Other liabilities | 237 | 145 |
Total liabilities | 361,905 | 389,475 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Common stock, par value $.01 per share; 100,000,000 shares authorized, 32,120,035 shares issued and outstanding at March 26, 2023, 32,010,919 shares issued and outstanding at December 25, 2022 | 321 | 320 |
Additional paid-in capital | 47,135 | 45,727 |
Retained earnings | 92,182 | 86,284 |
Treasury stock, at cost; 71,950 shares at March 26, 2023 and December 25, 2022 | 0 | 0 |
Total shareholders' equity | 139,638 | 132,331 |
Total liabilities and shareholders' equity | 501,543 | 521,806 |
Franchise Rights [Member] | ||
Current assets: | ||
Finite-lived intangible assets, net of accumulated amortization | 39,432 | 39,993 |
Lease And Other Intangible Assets [Member] | ||
Current assets: | ||
Finite-lived intangible assets, net of accumulated amortization | $ 4,981 | $ 5,002 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 26, 2023 | Dec. 25, 2022 |
Allowance for doubtful accounts | $ 38 | $ 57 |
Property and equipment, accumulated depreciation | $ 211,809 | $ 205,849 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 32,120,035 | 32,010,919 |
Common stock, shares outstanding (in shares) | 32,120,035 | 32,010,919 |
Treasury stock, shares (in shares) | 71,950 | 71,950 |
Franchise Rights [Member] | ||
Finite-lived intangible assets, accumulated amortization | $ 11,586 | $ 11,025 |
Lease And Other Intangible Assets [Member] | ||
Finite-lived intangible assets, accumulated amortization | $ 1,354 | $ 1,333 |
Condensed Consolidated Income S
Condensed Consolidated Income Statement (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Revenues: | ||
Revenue | $ 136,857 | $ 126,132 |
Costs and expenses: | ||
Food and beverage costs | 42,419 | 38,611 |
Restaurant operating expenses | 60,202 | 54,640 |
Marketing and advertising | 4,510 | 4,915 |
General and administrative costs | 9,507 | 9,241 |
Depreciation and amortization expenses | 6,543 | 4,793 |
Pre-opening costs | 522 | 881 |
Gain on lease modifications | (869) | 0 |
Total costs and expenses | 122,834 | 113,081 |
Operating income | 14,023 | 13,051 |
Other income (expense): | ||
Interest expense, net | (252) | (324) |
Other | 6 | 28 |
Income before income taxes | 13,777 | 12,755 |
Income tax expense | 2,435 | 2,342 |
Net income | $ 11,342 | $ 10,413 |
Basic earnings per common share (in dollars per share) | $ 0.35 | $ 0.31 |
Diluted earnings per common share (in dollars per share) | $ 0.35 | $ 0.31 |
Shares used in computing earnings per common share: | ||
Basic (in shares) | 32,030,543 | 33,589,838 |
Diluted (in shares) | 32,437,410 | 33,885,076 |
Cash dividends declared per common share (in dollars per share) | $ 0.16 | $ 0.12 |
Restaurant Sales [Member] | ||
Revenues: | ||
Revenue | $ 128,885 | $ 118,713 |
Franchise [Member] | ||
Revenues: | ||
Revenue | 5,269 | 4,730 |
Service, Other [Member] | ||
Revenues: | ||
Revenue | $ 2,703 | $ 2,689 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock, Common [Member] | Total |
Balance (in shares) at Dec. 26, 2021 | 33,575 | 72 | |||
Balance at Dec. 26, 2021 | $ 336 | $ 68,923 | $ 65,952 | $ 0 | $ 135,211 |
Net income | 0 | 0 | 10,413 | 0 | 10,413 |
Dividends | $ 0 | 0 | (4,109) | $ 0 | (4,109) |
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 84 | 0 | |||
Shares issued under stock compensation plan net of shares withheld for tax effects | $ 1 | (722) | 0 | $ 0 | (721) |
Stock-based compensation | $ 0 | 1,754 | 0 | $ 0 | 1,754 |
Balance (in shares) at Mar. 27, 2022 | 33,659 | 72 | |||
Balance at Mar. 27, 2022 | $ 337 | 69,955 | 72,256 | $ 0 | 142,548 |
Balance (in shares) at Dec. 25, 2022 | 32,011 | 72 | |||
Balance at Dec. 25, 2022 | $ 320 | 45,727 | 86,284 | $ 0 | 132,331 |
Net income | 0 | 0 | 11,342 | 0 | 11,342 |
Dividends | $ 0 | 0 | (5,444) | $ 0 | (5,444) |
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 109 | 0 | |||
Shares issued under stock compensation plan net of shares withheld for tax effects | $ 1 | (861) | 0 | $ 0 | (860) |
Stock-based compensation | $ 0 | 2,269 | 0 | $ 0 | 2,269 |
Balance (in shares) at Mar. 26, 2023 | 32,120 | 72 | |||
Balance at Mar. 26, 2023 | $ 321 | $ 47,135 | $ 92,182 | $ 0 | $ 139,638 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Cash dividends, per common share (in dollars per share) | $ 0.16 | $ 0.12 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 11,342 | $ 10,413 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,543 | 4,793 |
Deferred income taxes | (396) | (83) |
Non-cash interest expense | 54 | 54 |
Stock-based compensation expense | 2,269 | 1,754 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 17,411 | 12,894 |
Inventories | 699 | 664 |
Prepaid expenses and other | 1,551 | 811 |
Other assets | 0 | (211) |
Accounts payable and accrued expenses | (5,791) | (15,754) |
Deferred revenue | (9,319) | (7,731) |
Operating lease liabilities and assets | (2,193) | 3,821 |
Other liabilities | 300 | (1,892) |
Net cash provided by operating activities | 22,470 | 9,533 |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (8,261) | (10,050) |
Net cash used in investing activities | (8,261) | (10,050) |
Cash flows from financing activities: | ||
Principal repayments on long-term debt | (15,000) | (20,000) |
Cash dividend payments | (5,351) | (4,109) |
Tax payments from the vesting of restricted stock | (860) | (721) |
Net cash used in financing activities | (21,211) | (24,830) |
Net decrease in cash and cash equivalents | (7,002) | (25,347) |
Cash and cash equivalents at beginning of period | 23,002 | 92,133 |
Cash and cash equivalents at end of period | 16,000 | 66,786 |
Supplemental disclosures of cash flow information: | ||
Interest, net of capitalized interest | 401 | 260 |
Income taxes | 1 | 0 |
Noncash investing and financing activities: | ||
Accrued acquisition of property and equipment | $ 994 | $ 1,471 |
Note 1 - The Company and Basis
Note 1 - The Company and Basis of Presentation | 3 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ( 1 Ruth’s Hospitality Group, Inc. is a restaurant company focused on the upscale dining segment. Ruth’s Hospitality Group, Inc. operates Company-owned Ruth’s Chris Steak House restaurants and sells franchise rights to Ruth’s Chris Steak House franchisees giving the franchisees the exclusive right to operate similar restaurants in a particular area designated in the franchise agreement. As of March 26, 2023 March 26, 2023, The accompanying unaudited condensed consolidated financial statements of Ruth’s Hospitality Group, Inc. and its subsidiaries (collectively, the "Company") as of March 26, 2023 December 25, 2022 thirteen March 26, 2023 March 27, 2022 The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. The interim results of operations for the periods ended March 26, 2023 March 27, 2022 not may 10 December 25, 2022 The Company operates on a 52 53 December. March 26, 2023 March 27, 2022 thirteen first 2023 first 2022 2023 53 2022 52 COVID- 19 The novel coronavirus 2019 19 thirteen March 26,2023 March 27, 2022, Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reporting of revenue and expenses during the periods presented to prepare these condensed consolidated financial statements in conformity with GAAP. Significant items subject to such estimates and assumptions include the carrying amounts of property and equipment, goodwill, franchise rights, operating lease right of use assets and obligations related to gift cards, income taxes, operating lease liabilities, incentive compensation, workers’ compensation and medical insurance. Actual results could differ from those estimates. |
Note 2 - Fair Value Measurement
Note 2 - Fair Value Measurements | 3 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | ( 2 Fair value is defined under FASB ASC Topic 820, 820 820 three The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three • Level 1—quoted • Level 2—quoted • Level 3—unobservable The following were used to estimate the fair value of each class of financial instruments: • The carrying amount of cash and cash equivalents, receivables, accounts payable and accrued expenses and other current liabilities are a reasonable estimate of their fair values due to their short duration. • Borrowings under the senior credit facility as of March 26, 2023 December 25, 2022 2 The Company did not March 26, 2023 The Company’s non-financial assets measured at fair value on a non-recurring basis as of December 25, 2022 Fair Value as of December 25, 2022 Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Losses on Impairment Long-lived assets $ 281 $ — $ 281 $ 574 |
Note 3 - Leases
Note 3 - Leases | 3 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | ( 3 The Company leases restaurant facilities and equipment. The Company determines whether an arrangement is or contains a lease at contract inception. The Company’s leases are all classified as operating leases, which are included as operating lease right of use assets (“ROU assets”) and operating lease liabilities in the Company’s condensed consolidated balance sheet. Operating lease liabilities are recognized based on the present value of future minimum lease payments over the expected lease term at commencement date. ROU assets are measured based on the operating lease liabilities adjusted for lease incentives, initial indirect costs and impairments of operating lease assets. Minimum lease payments include only the fixed lease components of the agreements, as well as any variable rate payments that depend on an index, which are measured initially using the index at the lease commencement dates. To determine the present value of future minimum lease payments, the Company estimates incremental borrowing rates based on the information available at the lease commencement dates, or amendment date for contract modifications. The Company estimates its incremental borrowing rates by determining the synthetic credit rating of the Company using quantitative and qualitative analysis and then adjusting the synthetic credit rating to a collateralized credit rating. A spread curve is then developed using the U.S. corporate bond yield curve of the same credit rating and the U.S. Treasury curve to determine the rate for different terms. The expected lease terms include options to extend when it is reasonably certain the Company will exercise the options up to a total term of 20 years. Total lease cost is expensed on a straight-line basis over the life of a lease. Additionally, incentives received from landlords used to fund leasehold improvements reduce the ROU assets related to those leases and are amortized as reductions to lease expense over the lives of the leases. Variable lease payments that do not 12 As of March 26, 2023 not ees or material restrictive covenants. As of March 26, 2023 , the weighted average remaining lease term and discount rate for operating leases is 13.6 years and 5.8%, respectively. The components of lease expense are as follows (in thousands): 13 Weeks Ended 13 Weeks Ended Classification March 26, 2023 March 27, 2022 Operating lease cost Restaurant operating expenses and general and administrative costs $ 6,726 $ 6,158 Variable lease cost Restaurant operating expenses and general and administrative costs 3,564 3,365 Total lease cost $ 10,290 $ 9,523 As of March 26, 2023 Operating Leases 2023, excluding the first thirteen weeks ended March 26, 2023 $ 19,797 2024 27,719 2025 26,596 2026 25,407 2027 24,983 Thereafter 225,800 Imputed interest (113,789 ) $ 236,513 Supplemental cash flow information related to operating leases was as follows (in thousands): 13 Weeks Ended 13 Weeks Ended March 26, 2023 March 27, 2022 Cash paid for amounts included in the measurement of lease liabilities $ 6,907 $ 6,315 Right-of-use assets obtained in exchange for lease obligations $ 7,008 $ 19,932 Additionally, as of March 26, 2023 , the Company has executed two leases for new Ruth’s Chris Steak House Restaurant locations with undiscounted fixed payments over the initial term of $15.6 million. These leases will commence when the landlords make the properties available to the Company. These leases are expected to commence during the next 12 |
Note 4 - Revenue
Note 4 - Revenue | 3 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | ( 4 In the following tables, the Company’s revenue is disaggregated by major component for each category on the consolidated statements of operations (in thousands). Thirteen Weeks Ended March 26, 2023: Domestic International Total Revenue Restaurant sales $ 128,885 $ — $ 128,885 Franchise income 4,332 937 5,269 Other operating income 2,703 — 2,703 Total revenue $ 135,920 $ 937 $ 136,857 Thirteen Weeks Ended March 27, 2022: Domestic International Total Revenue Restaurant sales $ 118,713 $ - $ 118,713 Franchise income 4,102 628 4,730 Other operating income 2,689 - 2,689 Total revenue $ 125,504 $ 628 $ 126,132 The following table provides information about receivables and deferred revenue liabilities from contracts with customers (in thousands). March 26, December 25, 2023 2022 Accounts receivable, less allowance for doubtful accounts 2023 - $ 38 57 $ 11,093 $ 27,223 Deferred revenue $ 65,056 $ 74,375 Unearned franchise fees $ 2,197 $ 2,257 Significant changes in the deferred revenue balance and the unearned franchise fees balance during the first thirteen 2023 Deferred Unearned Revenue Franchise Fees Balance at December 25, 2022 $ 74,375 $ 2,257 Decreases in the beginning balance from gift card redemptions (15,283 ) — Increases due to proceeds received, excluding amounts recognized during the period 5,888 — Decreases due to recognition of franchise development and opening fees — (60 ) Other 76 — Balance at March 26, 2023 $ 65,056 $ 2,197 Significant changes in the deferred revenue balance and the unearned franchise fees balance during the first thirteen 2022 Deferred Unearned Revenue Franchise Fees Balance at December 26, 2021 $ 69,029 $ 2,219 Decreases in the beginning balance from gift card redemptions (13,790 ) — Increases due to proceeds received, excluding amounts recognized during the period 6,057 — Decreases due to recognition of franchise development and opening fees — (75 ) Increases due to proceeds received for franchise development and opening fees — 300 Other 2 — Balance at March 27, 2022 $ 61,298 $ 2,444 |
Note 5 - Long-term Debt
Note 5 - Long-term Debt | 3 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | ( 5 Long-term debt consists of the following (in thousands): March 26, December 25, 2023 2022 Senior Credit Facility: Revolving credit facility $ 15,000 $ 30,000 Less current maturities — — $ 15,000 $ 30,000 As of March 26, 2023 March 26, 2023 The amended and restated credit agreement the Company entered into on October 18, 2021 may October 18, 2026 The Credit Agreement contains customary representations and affirmative and negative covenants (including limitations on indebtedness and liens) as well as financial covenants, as described below, requiring a minimum fixed coverage charge ratio as defined in the Credit Agreement (“Fixed Charge Coverage Ratio”) limiting the Company’s actual leverage ratio as defined in the Credit Agreement (“Maximum Consolidated Leverage Ratio”). The Fixed Charge Coverage Ratio must be equal to or greater than 1.25:1.00 no 3.00:1.00. not 2.50:1.00 not may may Interest rate margins and the fee for the unused commitment are calculated based on the Maximum Consolidated Leverage Ratio, and at the Company’s option, revolving loans may (i) LIBOR, plus an applicable margin, or (ii) the highest of (a) the rate publicly announced by Wells Fargo as its prime rate, (b) the average published federal funds rate in effect on such day plus 0.50% and (c) one The applicable margin is based on the Company’s Maximum Consolidated Leverage Ratio, ranging from (a) 1.50% to 2.25% above the applicable LIBOR rate or (b) 0.50% to 1.25% above the applicable Base Rate. As of March 26, 2023, Subsequent to the end of first 2023 , the Company received proceeds of $5.0 million from a draw on the revolving credit facility. |
Note 6 - Shareholders' Equity
Note 6 - Shareholders' Equity | 3 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | ( 6 Equity In July 2022, first 2023 first 2022. March 26, 2023, The Company’s Board of Directors declared the following dividends during the periods presented (amounts in thousands, except per share amounts): Declaration Date Dividend per Share Record Date Total Amount Payment Date Fiscal Year 2023 February 8, 2023 $ 0.16 3/10/2023 $ 5,444 3/24/2023 Outstanding unvested restricted stock is not March 26, 2023 totaled 677,541 shares. Restricted stock units outstanding as of March 26, 2023 totaled 103,912 shares. Performance-based stock awards (in the form of market stock units and performance stock units) outstanding as of March 26, 2023 totaled 326,170 shares. |
Note 7 - Segment Information
Note 7 - Segment Information | 3 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | ( 7 The Company has two reportable segments – the Company-owned steakhouse segment and the franchise operations segment. The Company does not March 26, 2023 not Not No not No Segment information related to the Company’s two 13 Weeks Ended March 26, March 27, 2023 2022 Revenues: Company-owned steakhouse restaurants $ 130,161 $ 119,993 Franchise operations 5,269 4,730 Unallocated other revenue and revenue discounts 1,427 1,409 Total revenues $ 136,857 $ 126,132 Segment profits: Company-owned steakhouse restaurants $ 27,541 $ 26,742 Franchise operations 5,269 4,730 Total segment profit 32,810 31,472 Unallocated operating income 1,426 1,409 Marketing and advertising expenses (4,510 ) (4,915 ) General and administrative costs (9,507 ) (9,241 ) Depreciation and amortization expenses (6,543 ) (4,793 ) Pre-opening costs (522 ) (881 ) Gain on lease modifications 869 — Interest expense, net (252 ) (324 ) Other income 6 28 Income before income tax expense $ 13,777 $ 12,755 Capital expenditures: Company-owned steakhouse restaurants $ 7,458 $ 6,907 Corporate assets 803 3,143 Total capital expenditures $ 8,261 $ 10,050 March 26, December 25, 2023 2022 Total assets: Company-owned steakhouse restaurants 450,486 $ 453,650 Franchise operations 3,124 2,487 Corporate assets - unallocated 44,149 62,281 Deferred income taxes - unallocated 3,784 3,388 Total assets $ 501,543 $ 521,806 |
Note 8 - Stock-based Employee C
Note 8 - Stock-based Employee Compensation | 3 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | ( 8 On May 15, 2018, 2018 "2018 2005 "2005 May 30, 2018. 2018 2005 2018 2005 May 15, 2018 March 26, 2023 , there were no shares of common stock issuable upon exercise of currently outstanding options, and 19,596 currently outstanding unvested restricted stock awards under the 2005 March 26, 2023 , there were 1,107,623 currently outstanding unvested restricted stock awards, restricted stock units, and performance stock awards (in the form of market stock units and performance stock units) under the 2018 March 26, 2023 , the 2018 first thirteen of fiscal year 2023 , the Company issued 220,469 restricted stock awards and units and 110,131 performance-based stock units to directors, officers and other employees of the Company. Of the 330,600 restricted stock awards, restricted stock units and performance stock awards issued during the first thirteen of fiscal year 2023 , 99,242 shares will vest in fiscal year 2024, 2025 2026. 2026, 100% first thirteen of fiscal years 2023 and 2022 was $2.3 million and $1.8 million, respectively. |
Note 9 - Income Taxes
Note 9 - Income Taxes | 3 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | ( 9 Income tax expense differs from amounts computed by applying the federal statutory income tax rate to income from continuing operations before income taxes as follows: 13 Weeks Ended March 26, March 27, 2023 2022 Income tax expense at statutory rates 21.0 % 21.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 4.2 % 3.9 % Federal employment tax credits (9.4 %) (8.3 %) Non-deductible executive compensation 1.9 % 1.9 % Stock-based compensation 0.9 % (0.1 %) Other (0.9 %) (0.0 %) Effective tax rate 17.7 % 18.4 % The Employment-related tax credits line in the effective tax rate schedule above is comprised mainly of federal FICA tip credits which the Company utilizes to reduce its periodic federal income tax expense. A restaurant company employer may The Company files consolidated and separate income tax returns in the United States federal jurisdiction and many state jurisdictions, respectively. With few exceptions, the Company is no 2018. |
Note 10 - Earnings Per Share
Note 10 - Earnings Per Share | 3 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | ( 10 The following table sets forth the computation of earnings per share (amounts in thousands, except share and per share amounts): 13 Weeks Ended March 26, March 27, 2023 2022 Net income $ 11,342 $ 10,413 Shares: Weighted average number of common shares outstanding - basic 32,030,543 33,589,838 Weighted average number of common shares outstanding - diluted 32,437,410 33,885,076 Basic earnings per common share $ 0.35 $ 0.31 Diluted earnings per common share $ 0.35 $ 0.31 Diluted earnings per share for the first quarter of fiscal years 2023 and 2022 excludes restricted shares of 184,158 and 11,006, respectively, which were outstanding during the period but were anti-dilutive and had no |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 3 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | ( 11 The Company is subject to various claims, possible legal actions and other matters arising in the normal course of business. Management does not The legislation and regulations related to tax and unclaimed property matters are complex and subject to varying interpretations by both government authorities and taxpayers. The Company remits a variety of taxes and fees to various governmental authorities, including excise taxes, property taxes, sales and use taxes, and payroll taxes. The taxes and fees remitted by the Company are subject to review and audit by the applicable governmental authorities which could assert claims for additional assessments. Although management believes that the tax positions are reasonable and consequently there are no may may may The Company is subject to unclaimed or abandoned property (escheat) laws which require the Company to turn over to certain state governmental authorities the property of others held by the Company that has been unclaimed for specified periods of time. The Company is subject to audit by individual U.S. states with regard to its escheatment practices. The Company has a pending voluntary disclosure agreement with the State of Delaware to resolve potential liability surrounding gift cards. On February 26, 2018, September 2, 2020, two No RIC1804127 July 29, 2021, September 17, 2021, October 19, 2021, May 11, 2022, June 8, 2022, one September 12, 2022, October 27, 2022, March 26, 2023. On April 27, 2023, The Company currently buys a majority of its beef from two suppliers. Although there are a limited number of beef suppliers, management believes that other suppliers could provide similar product on comparable terms. A change in suppliers, however, could cause supply shortages and a possible loss of sales, which would affect operating results adversely. The Company could experience other potential impacts as a result of the COVID- 19 not not may 19 |
Note 12 - Subsequent Events
Note 12 - Subsequent Events | 3 Months Ended |
Mar. 26, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | ( 12 On May 2, 2023, Pursuant to the Merger Agreement, and upon the terms and subject to the conditions thereof, Merger Sub has agreed to commence a tender offer (the “Offer”), to purchase all of the shares of common stock, par value $0.01 per share (the “Company Common Stock”), of the Company issued and outstanding (each a “Share” and, collectively, the “Shares”) at a price of $21.50 per share of Company Common Stock (the “Per Share Price”), in cash, without interest thereon (but subject to applicable withholding). The obligation of Merger Sub to consummate the Offer is subject to the satisfaction or waiver of customary conditions, including, among others, (i) the tender of Shares representing at least a majority of the outstanding Company Common Stock, (ii) any waiting period applicable to the Offer under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, not Following the consummation of the Offer, subject to the terms and conditions of the Merger Agreement and in accordance with Section 251 not 262 262 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 26, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The accompanying unaudited condensed consolidated financial statements of Ruth’s Hospitality Group, Inc. and its subsidiaries (collectively, the "Company") as of March 26, 2023 December 25, 2022 thirteen March 26, 2023 March 27, 2022 The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. The interim results of operations for the periods ended March 26, 2023 March 27, 2022 not may 10 December 25, 2022 The Company operates on a 52 53 December. March 26, 2023 March 27, 2022 thirteen first 2023 first 2022 2023 53 2022 52 |
Impact of Unusual Risks and Uncertainties [Policy Text Block] | COVID- 19 The novel coronavirus 2019 19 thirteen March 26,2023 March 27, 2022, |
Use of Estimates, Policy [Policy Text Block] | Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reporting of revenue and expenses during the periods presented to prepare these condensed consolidated financial statements in conformity with GAAP. Significant items subject to such estimates and assumptions include the carrying amounts of property and equipment, goodwill, franchise rights, operating lease right of use assets and obligations related to gift cards, income taxes, operating lease liabilities, incentive compensation, workers’ compensation and medical insurance. Actual results could differ from those estimates. |
Note 2 - Fair Value Measureme_2
Note 2 - Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Fair Value Measurements, Nonrecurring [Table Text Block] | Fair Value as of December 25, 2022 Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Losses on Impairment Long-lived assets $ 281 $ — $ 281 $ 574 |
Note 3 - Leases (Tables)
Note 3 - Leases (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | 13 Weeks Ended 13 Weeks Ended Classification March 26, 2023 March 27, 2022 Operating lease cost Restaurant operating expenses and general and administrative costs $ 6,726 $ 6,158 Variable lease cost Restaurant operating expenses and general and administrative costs 3,564 3,365 Total lease cost $ 10,290 $ 9,523 |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | Operating Leases 2023, excluding the first thirteen weeks ended March 26, 2023 $ 19,797 2024 27,719 2025 26,596 2026 25,407 2027 24,983 Thereafter 225,800 Imputed interest (113,789 ) $ 236,513 |
Schedule of Supplemental Cash Flow Related to Operating Lease Cost [Table Text Block] | 13 Weeks Ended 13 Weeks Ended March 26, 2023 March 27, 2022 Cash paid for amounts included in the measurement of lease liabilities $ 6,907 $ 6,315 Right-of-use assets obtained in exchange for lease obligations $ 7,008 $ 19,932 |
Note 4 - Revenue (Tables)
Note 4 - Revenue (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Thirteen Weeks Ended March 26, 2023: Domestic International Total Revenue Restaurant sales $ 128,885 $ — $ 128,885 Franchise income 4,332 937 5,269 Other operating income 2,703 — 2,703 Total revenue $ 135,920 $ 937 $ 136,857 Thirteen Weeks Ended March 27, 2022: Domestic International Total Revenue Restaurant sales $ 118,713 $ - $ 118,713 Franchise income 4,102 628 4,730 Other operating income 2,689 - 2,689 Total revenue $ 125,504 $ 628 $ 126,132 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | March 26, December 25, 2023 2022 Accounts receivable, less allowance for doubtful accounts 2023 - $ 38 57 $ 11,093 $ 27,223 Deferred revenue $ 65,056 $ 74,375 Unearned franchise fees $ 2,197 $ 2,257 Deferred Unearned Revenue Franchise Fees Balance at December 25, 2022 $ 74,375 $ 2,257 Decreases in the beginning balance from gift card redemptions (15,283 ) — Increases due to proceeds received, excluding amounts recognized during the period 5,888 — Decreases due to recognition of franchise development and opening fees — (60 ) Other 76 — Balance at March 26, 2023 $ 65,056 $ 2,197 Deferred Unearned Revenue Franchise Fees Balance at December 26, 2021 $ 69,029 $ 2,219 Decreases in the beginning balance from gift card redemptions (13,790 ) — Increases due to proceeds received, excluding amounts recognized during the period 6,057 — Decreases due to recognition of franchise development and opening fees — (75 ) Increases due to proceeds received for franchise development and opening fees — 300 Other 2 — Balance at March 27, 2022 $ 61,298 $ 2,444 |
Note 5 - Long-term Debt (Tables
Note 5 - Long-term Debt (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Schedule of Long-Term Debt Instruments [Table Text Block] | March 26, December 25, 2023 2022 Senior Credit Facility: Revolving credit facility $ 15,000 $ 30,000 Less current maturities — — $ 15,000 $ 30,000 |
Note 6 - Shareholders' Equity (
Note 6 - Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Schedule of Dividends Payable [Table Text Block] | Declaration Date Dividend per Share Record Date Total Amount Payment Date Fiscal Year 2023 February 8, 2023 $ 0.16 3/10/2023 $ 5,444 3/24/2023 |
Note 7 - Segment Information (T
Note 7 - Segment Information (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | 13 Weeks Ended March 26, March 27, 2023 2022 Revenues: Company-owned steakhouse restaurants $ 130,161 $ 119,993 Franchise operations 5,269 4,730 Unallocated other revenue and revenue discounts 1,427 1,409 Total revenues $ 136,857 $ 126,132 Segment profits: Company-owned steakhouse restaurants $ 27,541 $ 26,742 Franchise operations 5,269 4,730 Total segment profit 32,810 31,472 Unallocated operating income 1,426 1,409 Marketing and advertising expenses (4,510 ) (4,915 ) General and administrative costs (9,507 ) (9,241 ) Depreciation and amortization expenses (6,543 ) (4,793 ) Pre-opening costs (522 ) (881 ) Gain on lease modifications 869 — Interest expense, net (252 ) (324 ) Other income 6 28 Income before income tax expense $ 13,777 $ 12,755 Capital expenditures: Company-owned steakhouse restaurants $ 7,458 $ 6,907 Corporate assets 803 3,143 Total capital expenditures $ 8,261 $ 10,050 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | March 26, December 25, 2023 2022 Total assets: Company-owned steakhouse restaurants 450,486 $ 453,650 Franchise operations 3,124 2,487 Corporate assets - unallocated 44,149 62,281 Deferred income taxes - unallocated 3,784 3,388 Total assets $ 501,543 $ 521,806 |
Note 9 - Income Taxes (Tables)
Note 9 - Income Taxes (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 13 Weeks Ended March 26, March 27, 2023 2022 Income tax expense at statutory rates 21.0 % 21.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 4.2 % 3.9 % Federal employment tax credits (9.4 %) (8.3 %) Non-deductible executive compensation 1.9 % 1.9 % Stock-based compensation 0.9 % (0.1 %) Other (0.9 %) (0.0 %) Effective tax rate 17.7 % 18.4 % |
Note 10 - Earnings Per Share (T
Note 10 - Earnings Per Share (Tables) | 3 Months Ended |
Mar. 26, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 13 Weeks Ended March 26, March 27, 2023 2022 Net income $ 11,342 $ 10,413 Shares: Weighted average number of common shares outstanding - basic 32,030,543 33,589,838 Weighted average number of common shares outstanding - diluted 32,437,410 33,885,076 Basic earnings per common share $ 0.35 $ 0.31 Diluted earnings per common share $ 0.35 $ 0.31 |
Note 1 - The Company and Basi_2
Note 1 - The Company and Basis of Presentation (Details Textual) | Mar. 26, 2023 |
Entity Operated Units [Member] | |
Number of Restaurants | 77 |
Franchised Units [Member] | |
Number of Restaurants | 74 |
Ruths Chris Steak House [Member] | |
Number of Restaurants | 154 |
Ruths Chris Steak House [Member] | Entity Operated Units [Member] | |
Number of Restaurants | 77 |
Ruths Chris Steak House [Member] | Contractual Agreement [Member] | |
Number of Restaurants | 3 |
Ruths Chris Steak House [Member] | Franchised Units [Member] | |
Number of Restaurants | 74 |
Ruths Chris Steak House [Member] | Franchised Units [Member] | International [Member] | |
Number of Restaurants | 23 |
Note 2 - Fair Value Measureme_3
Note 2 - Fair Value Measurements (Details Textual) $ in Thousands | Mar. 26, 2023 USD ($) |
Fair Value, Nonrecurring [Member] | |
Assets, Fair Value Disclosure | $ 0 |
Note 2 - Fair Value Measureme_4
Note 2 - Fair Value Measurements - Assets Measured at Fair Value on Non-recurring Basis (Details) - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 25, 2022 | Mar. 26, 2023 | |
Assets, Fair Value Disclosure | $ 0 | |
Long Lived Assets [Member] | ||
Assets, Fair Value Disclosure | $ 281 | |
Total losses on impairment | 574 | |
Long Lived Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure | 0 | |
Long Lived Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure | $ 281 |
Note 3 - Leases (Details Textua
Note 3 - Leases (Details Textual) $ in Millions | 3 Months Ended |
Mar. 26, 2023 USD ($) | |
Lessee, Operating Lease, Renewal Term (Year) | 5 years |
Operating Lease, Weighted Average Remaining Lease Term (Year) | 13 years 7 months 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 5.80% |
Number of Leases Executed | 2 |
Operating Lease, Initial Direct Cost Expense, over Term | $ 15.6 |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract (Year) | 20 years |
Maximum [Member] | |
Lessee, Operating Lease, Remaining Lease Term (Year) | 20 years |
Minimum [Member] | |
Lessee, Operating Lease, Remaining Lease Term (Year) | 1 year |
Note 3 - Leases - Schedule of C
Note 3 - Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Operating lease cost | $ 6,726 | $ 6,158 |
Variable lease cost | 3,564 | 3,365 |
Total lease cost | $ 10,290 | $ 9,523 |
Note 3 - Leases - Schedule of M
Note 3 - Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 26, 2023 USD ($) |
2023, excluding the first thirteen weeks ended March 26, 2023 | $ 19,797 |
2024 | 27,719 |
2025 | 26,596 |
2026 | 25,407 |
2027 | 24,983 |
Thereafter | 225,800 |
Imputed interest | (113,789) |
Operating Lease, Liability | $ 236,513 |
Note 3 - Leases - Schedule of S
Note 3 - Leases - Schedule of Supplemental Cash Flow Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities | $ 6,907 | $ 6,315 |
Right-of-use assets obtained in exchange for lease obligations | $ 7,008 | $ 19,932 |
Note 4 - Revenue - Summary of D
Note 4 - Revenue - Summary of Disaggregated Revenue by Major Component for Each Category (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Revenue | $ 136,857 | $ 126,132 |
Restaurant Sales [Member] | ||
Revenue | 128,885 | 118,713 |
Franchise [Member] | ||
Revenue | 5,269 | 4,730 |
Service, Other [Member] | ||
Revenue | 2,703 | 2,689 |
UNITED STATES | ||
Revenue | 135,920 | 125,504 |
UNITED STATES | Restaurant Sales [Member] | ||
Revenue | 128,885 | 118,713 |
UNITED STATES | Franchise [Member] | ||
Revenue | 4,332 | 4,102 |
UNITED STATES | Service, Other [Member] | ||
Revenue | 2,703 | 2,689 |
Non-US [Member] | ||
Revenue | 937 | 628 |
Non-US [Member] | Restaurant Sales [Member] | ||
Revenue | 0 | 0 |
Non-US [Member] | Franchise [Member] | ||
Revenue | 937 | 628 |
Non-US [Member] | Service, Other [Member] | ||
Revenue | $ 0 | $ 0 |
Note 4 - Revenue - Summary of R
Note 4 - Revenue - Summary of Receivables and Deferred Revenue Liabilities From Contracts With Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 26, 2023 | Mar. 27, 2022 | Dec. 25, 2022 | |
Accounts receivable, less allowance for doubtful accounts 2023 - $38; 2022 - $57 | $ 11,093 | $ 27,223 | |
Deferred revenue | 65,056 | $ 61,298 | 74,375 |
Unearned franchise fees | 2,197 | 2,444 | $ 2,257 |
Balance | 74,375 | 69,029 | |
Balance | 2,257 | 2,219 | |
Decreases in the beginning balance from gift card redemptions | (15,283) | (13,790) | |
Increases due to proceeds received, excluding amounts recognized during the period | 5,888 | 6,057 | |
Increases due to proceeds received, excluding amounts recognized during the period | 0 | ||
Decreases due to recognition of franchise development and opening fees | (60) | (75) | |
Other | 76 | 2 | |
Increases due to proceeds received for franchise development and opening fees | 300 | ||
Balance | 65,056 | 61,298 | |
Balance | $ 2,197 | $ 2,444 |
Note 4 - Revenue - Summary of_2
Note 4 - Revenue - Summary of Receivables and Deferred Revenue Liabilities From Contracts With Customers (Details) (Parentheticals) - USD ($) $ in Thousands | Mar. 26, 2023 | Dec. 25, 2022 |
Allowance for doubtful accounts | $ 38 | $ 57 |
Note 5 - Long-term Debt (Detail
Note 5 - Long-term Debt (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Oct. 18, 2021 | May 05, 2023 | Mar. 26, 2023 | |
Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | |||
Debt Instrument, Covenant, Minimum Liquidity | $ 25 | ||
Debt Instrument, Maturity Date | Oct. 18, 2026 | ||
Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | Subsequent Event [Member] | |||
Proceeds from Lines of Credit | $ 5 | ||
Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | Minimum [Member] | |||
Fixed Charge Coverage Ratio | 1.25% | ||
Consolidated Leverage Ratio for Restricted Junior Payments | 2.50% | ||
Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | Maximum [Member] | |||
Consolidated Leverage Ratio | 3% | ||
Senior Credit Facility [Member] | |||
Long-Term Line of Credit | $ 15 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 120 | ||
Long-Term Debt, Weighted Average Interest Rate, at Point in Time | 6.10% | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||
Letter of Credit [Member] | |||
Letters of Credit Outstanding, Amount | $ 5 | ||
Long-Term Debt, Weighted Average Interest Rate, at Point in Time | 1.60% | ||
Letter of Credit [Member] | Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10 | ||
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) 1 [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1% | ||
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) 1 [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Minimum [Member] | Base Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) 1 [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Maximum [Member] | Base Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 140 | ||
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | Subject To Satisfaction Of Certain Conditions And Lender Consent [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 200 | ||
Swingline Loans [Member] | Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5 |
Note 5 - Long-term Debt - Debt
Note 5 - Long-term Debt - Debt Disclosure (Details) - USD ($) $ in Thousands | Mar. 26, 2023 | Dec. 25, 2022 |
Revolving credit facility | $ 15,000 | $ 30,000 |
Less current maturities | 0 | 0 |
Long-Term Debt, Excluding Current Maturities | $ 15,000 | $ 30,000 |
Note 6 - Shareholders' Equity_2
Note 6 - Shareholders' Equity (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 26, 2023 | Mar. 27, 2022 | Oct. 31, 2019 | |
Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 677,541 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 103,912 | ||
Performance Shares [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 326,170 | ||
The 2019 Share Repurchase Plan [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 60 | ||
The 2022 Stock Purchase Agreement [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 40 | ||
Treasury Stock, Shares, Acquired (in shares) | 0 | 0 |
Note 6 - Shareholders' Equity -
Note 6 - Shareholders' Equity - Schedule of Dividends Declared and Payable (Details) - Dividend Declared1 [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 26, 2023 USD ($) $ / shares | |
Dividend Per Share (in dollars per share) | $ / shares | $ 0.16 |
Record Date | Mar. 10, 2023 |
Total Amount | $ | $ 5,444 |
Payment Date | Mar. 24, 2023 |
Note 7 - Segment Information (D
Note 7 - Segment Information (Details Textual) | 3 Months Ended |
Mar. 26, 2023 | |
Number of Operating Segments | 2 |
Entity Operated Units [Member] | |
Number of Restaurants | 77 |
Operated Under Contractual Agreements [Member] | |
Number of Restaurants | 3 |
Franchised Units [Member] | |
Number of Restaurants | 74 |
Note 7 - Segment Information -
Note 7 - Segment Information - Segment Information, Operating Profit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Revenue | $ 136,857 | $ 126,132 |
Segment profits | 32,810 | 31,472 |
Unallocated operating income | 1,426 | 1,409 |
Marketing and advertising expenses | (4,510) | (4,915) |
General and administrative costs | (9,507) | (9,241) |
Depreciation and amortization expenses | (6,543) | (4,793) |
Pre-opening costs | (522) | (881) |
Gain on lease modifications | 869 | 0 |
Interest expense, net | (252) | (324) |
Other income | 6 | 28 |
Income before income tax expense | 13,777 | 12,755 |
Capital expenditures | 8,261 | 10,050 |
Operating Segments [Member] | Company Owned Steakhouse Restaurants [Member] | ||
Revenue | 130,161 | 119,993 |
Segment profits | 27,541 | 26,742 |
Capital expenditures | 7,458 | 6,907 |
Operating Segments [Member] | Franchise Operations [Member] | ||
Revenue | 5,269 | 4,730 |
Segment profits | 5,269 | 4,730 |
Segment Reconciling Items [Member] | ||
Revenue | 1,427 | 1,409 |
Corporate, Non-Segment [Member] | ||
Capital expenditures | $ 803 | $ 3,143 |
Note 7 - Segment Information _2
Note 7 - Segment Information - Segment Information, Assets (Details) - USD ($) $ in Thousands | Mar. 26, 2023 | Dec. 25, 2022 |
Assets | $ 501,543 | $ 521,806 |
Operating Segments [Member] | Company Owned Steakhouse Restaurants [Member] | ||
Assets | 450,486 | 453,650 |
Operating Segments [Member] | Franchise Operations [Member] | ||
Assets | 3,124 | 2,487 |
Corporate, Non-Segment [Member] | ||
Assets | 44,149 | 62,281 |
Deferred income taxes - unallocated | $ 3,784 | $ 3,388 |
Note 8 - Stock-based Employee_2
Note 8 - Stock-based Employee Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
May 15, 2018 | Mar. 26, 2023 | Mar. 27, 2022 | |
Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 677,541 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 220,469 | ||
Performance Shares [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 326,170 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 110,131 | ||
Omnibus Incentive Plan 2018 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 2,500,000 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 1,107,623 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) | 1,372,374 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 330,600 | ||
Share-Based Payment Arrangement, Expense | $ 2.3 | $ 1.8 | |
Omnibus Incentive Plan 2018 [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 99,242 | ||
Omnibus Incentive Plan 2018 [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 56,627 | ||
Omnibus Incentive Plan 2018 [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 174,731 | ||
Omnibus Incentive Plan 2018 [Member] | Performance Shares [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 110,131 | ||
Long Term Equity Incentive Plan 2005 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period (in shares) | 1,649,394 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares of Common Stock Issuable upon Exercise (in shares) | 0 | ||
Long Term Equity Incentive Plan 2005 [Member] | Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 19,596 |
Note 9 - Income Taxes - Schedul
Note 9 - Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Income tax expense at statutory rates | 21% | 21% |
State income taxes, net of federal benefit | 4.20% | 3.90% |
Federal employment tax credits | (9.40%) | (8.30%) |
Non-deductible executive compensation | 1.90% | 1.90% |
Stock-based compensation | 0.90% | (0.10%) |
Other | (0.90%) | (0.00%) |
Effective tax rate | 17.70% | 18.40% |
Note 10 - Earnings Per Share (D
Note 10 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 184,158 | 11,006 |
Note 10 - Earnings Per Share -
Note 10 - Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 26, 2023 | Mar. 27, 2022 | |
Net income | $ 11,342 | $ 10,413 |
Basic (in shares) | 32,030,543 | 33,589,838 |
Diluted (in shares) | 32,437,410 | 33,885,076 |
Basic earnings per common share (in dollars per share) | $ 0.35 | $ 0.31 |
Diluted earnings per common share (in dollars per share) | $ 0.35 | $ 0.31 |
Note 11 - Commitments and Con_2
Note 11 - Commitments and Contingencies (Details Textual) $ in Millions | May 11, 2022 USD ($) | Mar. 26, 2023 USD ($) |
Number of Suppliers | 2 | |
Class Action Litigations [Member] | ||
Litigation Settlement, Amount Awarded to Other Party | $ 6 | |
Loss Contingency Accrual, Ending Balance | $ 6 |
Note 12 - Subsequent Events (De
Note 12 - Subsequent Events (Details Textual) - $ / shares | May 02, 2023 | Mar. 26, 2023 | Dec. 25, 2022 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 | |
Subsequent Event [Member] | |||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | ||
Shares Issued, Price Per Share (in dollars per share) | $ 21.50 |